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EDCM update. Mo Sukumaran (CMG Chair). 16 August 2012. 1 | Energy Networks Association – DCMF. Current position – EDCM. 16 August 2012. 2 | Energy Networks Association – DCMF. The EDCM for import charges is currently in force (from 1 April 2012) and is subject to open governance. - PowerPoint PPT Presentation
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EDCM update
16 August 20121 | Energy Networks Association – DCMF
Mo Sukumaran
(CMG Chair)
Current position – EDCM
16 August 20122 | Energy Networks Association – DCMF
• The EDCM for import charges is currently in force (from 1 April 2012) and is subject to open governance.
• On 1 June 2012, DNOs submitted new proposals for the EDCM for export charges.
• NPG (on behalf of the DNOs) has submitted a DCP (DCP 152) to incorporate the EDCM for export charges into DCUSA for implementation on 1 April 2013.
• On 1 June 2012, DNOs submitted a report to Ofgem to meet Condition 3 of Ofgem’s approval of the EDCM for import charges. Condition 3 relates to “network use factors”.
EDCM update
16 August 20123 | Energy Networks Association – DCMF
EDCM for export charges
EDCM for export charges
16 August 20124 | Energy Networks Association – DCMF
• Ofgem guidance on the methodology for export charges published on 2 February 2012.
• DNOs have been working jointly to develop new proposals through Workstream B and stakeholders consulted.
• We received a large number of responses to our consultation with constructive suggestions for improvements.
• We improved our proposed method in light of consultation responses.
EDCM for export charges
16 August 20125 | Energy Networks Association – DCMF
• Our final proposals for export charges were submitted to Ofgem on 1 June 2012.
• Submission documents, including illustrative export charges for 2012/2013 and our responses to the consultation responses are available to download on the ENA website.
• We are waiting for Ofgem to make a decision on proposed EDCM for export charges.
• Ofgem’s decision is expected in the autumn.
Next steps
16 August 20126 | Energy Networks Association – DCMF
• Have submitted a DCUSA change proposal that seeks to incorporate our proposed method into DCUSA.
• Allows the DCUSA panel and stakeholders sufficient time to consider these proposals before they are used to set indicative charges for 2013/2014.
• Also, the deadline for opting in to the EDCM for export charges/credits for 2013/2014 has now passed (30 June 2012).
EDCM update
16 August 20127 | Energy Networks Association – DCMF
Condition 3 of the EDCM for import charges
EDCM import – Condition 3
16 August 20128 | Energy Networks Association – DCMF
• Ofgem had placed 3 conditions on its approval of the EDCM for import.
– Conditions 1 and 2 have been met and the methodology updated.
– Condition 3 relates to the treatment of spare capacity in calculating network use factors for demand.
• Workstream A of the CMG has developed new proposals that satisfy the requirements of Condition 3 and stakeholders consulted.
• We received two responses to the consultation which supported the proposals but raised concerns on the potential change to import charges.
Next steps
16 August 20129 | Energy Networks Association – DCMF
• We believe that the change represents an improvement to the method and addresses concerns raised by stakeholders about the treatment of spare capacity on the network.
• We have submitted our report to Ofgem on 1 June 2012 along with our recommendation that the change be implemented as soon as practicable.
• DNOs have submitted a DCUSA change proposal to this effect (DCP 138).